Are they working on daily options for SPY?

[bln]

If your trading Indicies.. Nadex intra day is the best..
Options are so bad I am telling you.. you only get 1:1 on an option if you buy same day on a 20 pt move on SPX Nadex you will get at least 2.5:1..
Same with Nasdaq probably 3:1 on a 100pt move but 1:1 on an option same day..

Intraday doesn't cut it. I need the next day option on the day prior.

The thing is that I trade a systematic quant model, and the chosen expiration day is fixed at +1 day, or +4 days or +6 days. That means if a signal is trigged on monday, I need the tuesday expiration on monday 5 minutes before option market closing. Today if the expiration is out of sync I have to sometimes buy a one day longer expiration and manually close it on the day I need to to close instead of leaving it to go to OCC clearing. It's suboptimal for me.

 

[Windgeist]

I was testing a dialog strategy that works pretty well.

Sell Monday Option At the money
Buy Friday Option 1 SD away.

Every Monday, Weds and Friday ( hopefully Tues and Thurs in the future), roll the option to at the money on closing bell. Low risk, work well when market goes up, and losses are limited on the way down.

Sorry, RGLD, i'm interested in dailys too. But i didnt catch your example.
Could you please explain it a little bit more?
ex: when did you sell/buy before expiration? calls, puts?
THX a lot

 

[RGLD]

Sorry, RGLD, i'm interested in dailys too. But i didnt catch your example.
Could you please explain it a little bit more?
ex: when did you sell/buy before expiration? calls, puts?
THX a lot

You buy SPY PUT 1 SD away on Monday and sell a put that is at the money that expires same day.

3:50pm before market close, cover the put and sell another one at the money that's expiring on Weds.

3:50pm on Weds, do the same thing for Friday. (Now it's just a regular put spread).

 

[.sigma]

Isn't this the realm of Nadex? Who would want to trade dailies?

Same logic applied to when they introduced weeklies, nobody thought they'd be popular.. boom now weeklies are thee most popular expiration. I'd say as the market permit into the future, time seems to only be getting faster.. thus the transfer of risk will need "faster" expirations.

Eventually I think the stock market will also be traded 24/7, never closing.

 

[dickey7]

Am I seeing daily SPY options now…? Monday thru Friday?

 

[Overnight]

Am I seeing daily SPY options now…? Monday thru Friday?

Yes.

 

[dickey7]

Interesting…… I used to have a thrice-weekly strategy related to MWF options. May have to dust that off for 5 dpw now. Part of the risk of the MWF was holding overnight… hmmmm……?

 

[Overnight]

Interesting…… I used to have a thrice-weekly strategy related to MWF options. May have to dust that off for 5 dpw now. Part of the risk of the MWF was holding overnight… hmmmm……?

If you are asking if these 0DTE have an effect on your weeklies? I would intuitively say no?

 

[dickey7]

If you are asking if these 0DTE have an effect on your weeklies? I would intuitively say no?

No, sorry for the confusion, Overnight. I was saying I used to have a MWF option strategy, but there was always risk when holding Tuesday night and Thursday night, market open risk, etc. No pun intended, but there was overnight risk.